Do you think there should be a certain % of your annual income saved in the bank and as you grow it should be larger?

Would you feel there is an ideal to have in your first year, second year, third year and beyond?

If there aren't money saving goals, I am afraid more business owners than not will take any cash reserves they have and immediately spend them on upgrades, thus depleting their savings and their life line in case things slow down.

Personnaly I think one should have at least three months living in the bank at all times. I prefer to have 6 months on hand. As for savings goals, one should have some for retirement plans, smaller equipment goals, larger capital purchases and what ever else you want. The amount or percentage would be determined by how soon and how much you need to save. I have been known to bump up certain accounts to get the goal meet sooner and lowered some for a short time. Saving is an art and takes time .... but in the end it is worth it!

My main point is that in almost everything one should not use credit cards to purchase items that you don't have the cash to pay for. Did you know a credit card with a $1000 balance, paying the minimum payment every month would take over ten years to pay off!!! Now, who really is making the money. It sure isn't you and I, it is the banks and credit companies.